In your upcoming job search, you will be asked about your salary history. Is it in your best interest to reveal this personal information? And why do employers ask?
Don’t provide your salary history.
Generally, it isn’t in your best interest to answer the salary history question in the application, phone screening, or interview stages of your job search. The relevant information on which an employer should base an offer is the market value for this position, adjusted to the skills and experience of the candidate. A company that would choose an underqualified candidate in order to save money does not value its employees.
Consider this process a game of poker. What you’re really being asked is to show your cards without the interviewer showing hers. If there is ultimately a mutual interest, a salary negotiation is forthcoming so you don’t want to reveal your hand too early.
You may be hoping for a substantial increase from your last job. In this case, you dramatically reduce your perceived value by providing your last salary. We’re in a rising market now, so your value has gone up, making it even less likely that your previous salaries should have any bearing on your next offer.
Think of it another way: the job market is full of underpaid, but competent workers. Why? Because these people lose at salary negotiations.
Assuming you are moving up in your career, your next position will likely involve greater responsibilities and require a higher level of skill. Or you may move into a better paying industry in order to make the most of your career. In either of these scenarios, you lose negotiating leverage the moment you reveal your previous salary information.
Now, what if the position you apply for represents a step back in your career, or a new direction, and you would be willing to reduce your salary? In this case, we suggest you don’t lose focus on maximizing the potential offer, which is market value, factoring in your inexperience. You may be tempted to reveal your salary history, thinking that it will enhance your perceived value. This could go either way, but making your bet on market value usually leads to a market value offer, which is what you want when changing careers.
How should you answer the question?
As always, you should be prepare for every question you will likely face in an interview (Start by reading A Simple Game Plan for Winning Job Interviews and Winning Answers to Tough Job Interview Questions).
For the salary question, you’ll need to benchmark the market value for this position, depending on variables including your state, city, educational attainment, experience, and company size. You can find this information on Payscale, Salary, and Glassdoor.
Answer the salary history question by saying something like this: “My salary range for this job search is $XX,XXX – $XX,XXXX.” Your range should be fairly narrow, say within 5 percent from low to high, to show that you know your precise market value. You are also implying with a range that you may value one employer over another for culture, working environment, professional development opportunities, benefits, or any other criteria. This response shows that you are not simply offering your services to the highest bidder.
If the interviewer points out your indirect answer, you may choose to relent if you really sense that the interviewer is a stickler to the process. Our suggestion is to use this as an opportunity to showcase your diplomatic skills by reminding her of your value proposition and the market rate for someone of your experience level.
Finally, if an offer is made, remember, you do have the ability to negotiate your salary if you feel the market value and your skills and experience merit a stronger offer.